At the TED 2016 conference in Vancouver a couple of weeks ago, Steven Spielberg and Harrison Ford stepped into The Void, a interactive virtual reality experience.

The Hollywood biggies used the technology to be transported to another environment — they got to walk around an ancient tomb, feel the heat, meet sea monsters, and experience it all as if it was real.

And that's virtual reality (VR), the technology that's supposed to change the way humans interact with computers and experience the world in the future. Around the world, startups working on virtual reality (VR) — which transports you to another environment — and augmented reality (AR) — technology that enriches the real world by overlaying digital information such as videos, sound and graphics — are drawing huge investments but the waves are yet to hit Indian shores.

2016 has got off to a flying start when it comes to global investments in AR/VR. Data from tech advisor Digi-Capital show that investments in AR/VR touched $1.1 billion in the first two months of this year, far exceeding the $700 million invested during 2015.

While Google-backed Magic Leap raised the bulk of the money ($800 million), $300 million went into AR/VR solutions, hardware, marketing, distribution, apps and games.

Even without Magic Leap, investment in the space is up 20% in the first quarter of 2016 compared to the $250 million invested in the last quarter of 2015, says Tim Merel, founder and CEO, Digi-Capital. Merel expects 2016 to be the tipping point for AR/VR investment, moving from a few intrepid investors to the broader investor community.

Tech of the future

Large corporates have certainly sniffed the opportunity that AR and VR offer with the who's who of the technology world, including Google, Apple, Microsoft, Samsung and HTC, pouring in money.

Apart from developing the AR device Google Glass, the company has set up a separate arm specifically for VR. Apple's acquisition of Metaio, Facebook's $2 billion buyout of Oculus VR, Microsoft's HoloLens and Samsung's Rift VR are just a few examples of the big push for VR. Finnish telecom company Nokia, which released a VR camera OZO last year, is also investing heavily in VR. At the Mobile World Congress in Spain last month, several companies set up exhibits in the VR experience zone.

"Today, every big company is investing in VR. It is seen as a novel medium to engage a target audience for an enhanced marketing experience," said Hemanth Satyanarayana, founder, Imaginate. He has been working with AR/VR for the last 10 years both in the US and India. His Hyderabadbased firm, which was set up in 2011, has developed AR solutions for companies in real estate, ecommerce, healthcare, defence, entertainment and education. He says the technology is still evolving and people the world over are still researching its various aspects.

The real India

While Silicon Valley is abuzz with AR/VR, here in India, there isn't much noise. Going by data from research platform Tracxn, nine of the 74 Indian startups in AR/VR have received funding.

Vijay Karunakaran, founder, Ingage, a customer engagement company that uses AR solutions, says India lacks the research ecosystem to support innovation in the space. "Indian startups are still in the e-commerce space. Very few have a research mindset," he says.

It is also about having a long term vision, says Arnav Ghosh, CEO, Blippar India. The UK based company started operations in 2011 as an image recognition plat form and visual browser for brands and launched its India operations in 2014.

Ghosh says markets such as the US provide a sound testing ground for new technologies given its robust tech ecosystem. "Once the technology is proven, companies will come to markets like China and India," he says.

Imaginate's Satyanarayana agrees, and adds: "There is dearth of people who truly understand the DNA of VR in India. It is not only about a 360-degree video."

While most new technologies have taken their time to percolate in India, the infrastructure might also be an obstacle for growth of such technologies. Network strength, availability and stability are crucial for AR/VR to thrive. Besides, technologies such as AR/VR need powerful smartphones that can support related content.

Does the slow uptake have to do with the mindset of the consumer? Not really, say players in the space. Karunakaran and Ghosh say while the end consumer is ready to experience the technology, convincing companies and brands is a big challenge. They are still stuck with traditional ways of engaging with customers — TV and print ads.

How it's used

Real estate has already started experiencing the benefits of AR/VR with Commonfloor offering Retina headgear to view properties virtually in 3D. SmartVizX, which recently raised funding from multiple investors, builds immersive technology solutions using VR for real estate and other industries.

Education is beginning to use AR/VR. Ingage has partnered with Ratna Sagar Publishing to provide an AR experience for students in Classes 2 to 8. "When students read social science textbooks, they will experience the Himalayas coming up next to them," said Karunakaran.

Blippar has partnered with Amar Chitra Katha's Tinkle comics. Children can interact with characters like Suppandi while reading. "80% of what we retain is vis ual content. The idea is to create immersive content for kids and weave new visual content into the story. With AR, learning is intense and fun," says Ghosh.

Besides education and healthcare, live streaming is an area that is going to pick up, says Satyanarayana. "One can sit in one's living room and experience Wimbledon as if one is among the spectators, and the match is happening right there," he says.

Mixed reality

Digi-Capital estimates that the AR/VR market will hit $120 billion by 2020. "Asia could drive AR/VR revenue, followed by Europe and North America. This geographic potential has not escaped the notice of entrepreneurs and investors, as everyone tries to figure out where to place bets," says Merel.

Indian players see 2016 as the year of opportunity. Karunakaran expects first generation AR/VR devices such as smartphones and headset/glass-based experiences to catch on among consumers.

Satyanarayana is excited about AR/VR propelling teleportation, and expects more Indian startups to dip their hands into developing VR content, photographers and videographers to upgrade their skills, and more 360-degree cameras coming to the fore.

Worldwide, some of the brightest minds and best investors are working to build an AR/VR future. The road ahead seems winding for India but the day might not be far when we wake up in virtual reality.